ALBANY -- In another sign that Gov. Andrew Cuomo is raising the stakes at the negotiating table with public workers, the governor has called for the creation of a "Tier VI" pension package that would require employees to work longer for less money in their retirement years.

The governor's plan, detailed in legislation released Wednesday afternoon, comes less than two years after the Legislature passed a less-generous Tier V system secured by Gov. David Paterson.

Among the proposed changes: Raising the standard retirement age from 62 to 65; eliminating early retirement; requiring a 6 percent employee contributions for a workers' entire career rather than a limited period of time; excluding the use of overtime from calculating retirement pay; and banning the cashing in of unused sick days or vacation time.

Cuomo said the changes would save taxpayers $93 billion over 30 years -- excluding New York City, which is included in the plan but has a separate system.

Tier V, which affects workers hired since the beginning of 2010, is projected to save taxpayers $35 billion over the next 30 years.

While Cuomo's bill calls for Tier VI to apply to workers hired after July 1, it remains unclear if lawmakers would take up and pass the bill within the six legislative days remaining in this year's regular session, which is set to end June 20.

The governor said skyrocketing pension costs are forcing his hand.

"The numbers speak for themselves -- the pension system as we know it is unsustainable," Cuomo said in a statement accompanying the legislation. "This bill institutes common-sense reforms to bring government benefits more in line with the private sector while still serving our employees and protecting our retirees."

Cuomo's news release included supporting quotes from business and government leaders who said the change is badly needed.

"School districts have been punished by escalating pension costs for the last several years," said Timothy Kremer of the state School Boards Association.

"The cost of the public pension system has grown out of control," added Peter Baynes of the New York Conference of Mayors

But unions blasted the proposal, which they noted comes on top of a potential mass layoff -- reductions the administration plans to begin July 15, according to a memo sent to agencies on Wednesday.

Many saw the pension bill as a bargaining chip in ongoing labor negotiations.

Contracts for CSEA and PEF expired in April and both are in contract talks with the administration. The sessions are said to be going slowly. The governor could eventually offer to ease off on some of the pension changes, which carry long-term rather than immediate savings, in exchange for short-term concessions.

Cuomo has said he would have to lay off up to 9,800 state workers as a last resort if he can't get $450 million in negotiated workforce savings this year. Much of that is expected to come from labor savings.

The final session days are already packed with activity: The governor and lawmakers in recent weeks have announced handshake agreements on ethics reform and a property tax cap, but those measures still need to be debated and voted on in the Senate and Assembly.

Cuomo, a Democrat, has also said he wants to pass a same-sex marriage bill, although it's uncertain if there are enough votes for it in the Republican-controlled Senate.

Legislative leaders had little immediate reaction to the pension bill Wednesday. In the Assembly, Speaker Sheldon Silver was unavailable due to the Jewish holiday of Shavuoth.

Mark Hansen, spokesman for Dean Skelos, said the Senate Republican majority leader "recognizes the need to address rising pension costs, and we are reviewing the governor's proposal."

Democratic Assemblyman Jack McEneny, who has numerous state employees in his Albany district, said lawmakers would have to examine the bill, but predicted problems with having new hires working side-by-side with people who might be only slightly older or more experienced yet receive a richer pension.

"You can pay people high, you can pay people low -- but don't pay them differently for the same work," said McEneny, who previously served as head of human resources in the city and county of Albany. "There will be bitter resentment."

The Cuomo administration argues the sharp rises in pension costs are simply outrunning the ability of taxpayers to keep up.

The governor's announcement noted that since 2001, pension contributions by the state and local governments and schools increased from $368 million to $6.6 billion outside New York City. At the same time, costs in New York City rose from $1.1 billion to $8.4 billion.

Reach Karlin at 454-5758 or rkarlin@timesunion.com.

Cost shift to state workers

The majority of public employees are in Tiers III and IV; Tier V was instituted less than two years ago. Here are some key differences between the plans for current employees and the proposed Tier VI package:

Retirement age

Currently: 62 (57 for teachers; younger for police and fire)

Tier VI: 65

Early retirement

Currently: Allowed, with a lower pension payment

Tier VI: Not allowed

Vesting (Point at which a worker is eligible for a pension)

Currently: Five years for Tiers III and IV; 10 years for Tier V.

Tier VI: 12 years

Multiplier (Percent of salary that goes toward pension times number of years worked)

Currently: 1.67 percent until 20 years, then 2 percent -- both going forward and retroactively